mongolia growth group march 2015 economic...
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www.mongoliagrowthgroup.com | 1
March News Highlights
MINING PERMITS’ BIDS TO COMPLETE THIS APRIL
Auctions for the 106 licenses under dispute because of a court decision to revoke them in 2013 will be wrapped up by 2 April, Mining Minister R. Jigjid told the Cabinet Secretariat on 23 March. Six auctions were held for the 106 licenses revoked in 2013. Operations have been re-commissioned at 29 sites, including work by 24 of the original license holders. (Source: Montsame)
STATE BANK PLANS FOR $300MN DEBT OFFERING
State Bank on 9 March received permission from the Cabinet Secretariat for a USD 300 million debt offering. (Source: InfoMongolia)
MOODY’S ASSIGNS FIRST-TIME RATINGS TO STATE BANK
Moody’s Investors Service has assigned first-time ratings to State Bank LLC; namely a global local currency long-term deposit rating of B2, a foreign currency long-term deposit rating of B3, and a bank financial strength rating (BFSR) of E+. “State Bank’s BFSR reflects firstly, the bank’s solid franchise in Mongolia, which results in a less concentrated loan book when compared with its domestic peers, and secondly, its capitalization and liquidity levels, which are stronger than those of its similarly rated domestic peers, and which therefore support its BCA,” said Hyun Hee Park, a Moody’s assistant vice president and analyst. (Source: Moody’s Investor Services)
MONGOLIA WANTS FREE TRADE WITH KOREA
Mongolian Ambassador Baasanjav Ganbold expressed hope that negotiators from his country can sit down with Korean representatives soon to begin talks for a free trade agreement. The proposal came amid the country’s attempts to diversify its trade relations with countries other than its two key partners—China and Russia—as a counterbalance. If the trade pact is signed, Korea will be the second country to have such a pact with Mongolia, following Japan. (Source: Korea Times) (Source: Reuters)
MONGOLIA FEATURED AT BERLIN’S ITB TRAVEL FAIRT
“Niche” is the buzzword in Berlin as the 49th edition of the world’s largest travel show, the ITB, gets underway in the booming capital. Mongolia has been chosen as the partner country for this year’s ITB travel fair in Berlin (4 to 8 March) as operators around the world are trying to get more visitors to travel off the beaten path. Last year, business concluded at the ITB amounted to EUR 6.5 billion (USD 7.3 billion) and operators are hoping for a repeat. (Source: DW)
INSTITUTIONAL IMPROVEMENTS HELP MAKE MSE PROFITABLE AGAIN
The Mongolian Stock Exchange (MSE) turned in a profit in the first two months of the year after three years of poor returns. The improved performance follows efforts by the MSE to improve transparency while encouraging market activity with expanded trade of stocks and government bonds. The local exchange has sold MNT 100 billion of bonds in four months to traders from Great Britain, Japan, Korea, China and Malaysia. (Source: Daily News)
MONGOLIAN WOMAN INCLUDED IN ‘ASIA’S 50 MOST POWERFUL BUSINESSWOMEN 2015’
Ts. Garamjav has become the first Mongolian woman to be included in the Forbes list “Asia’s 50 Most Powerful Businesswomen.” Garamjav, 56, is the chair and founder of Monpolyment Group, which focuses on gold mining and construction. Those who make the list must be active in the upper echelons of the business world in Asia, wield significant power and have access to robust financial resources. Garamjav runs Monpolyment with her daughter, recording annual revenue of around USD 60 million. (Source: UB Post)
Mongolia Growth Group March 2015 Economic Update
www.mongoliagrowthgroup.com | 2
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Jul-‐0
9
Sep-‐09
Nov-‐09
Jan-‐10
Mar-‐10
May-‐10
Jul-‐1
0
Sep-‐10
Nov-‐10
Jan-‐11
Mar-‐11
May-‐11
Jul-‐1
1
Sep-‐11
Nov-‐11
Jan-‐12
Mar-‐12
May-‐12
Jul-‐1
2
Sep-‐12
Nov-‐12
Jan-‐13
Mar-‐13
May-‐13
Jul-‐1
3
Sep-‐13
Nov-‐13
Jan-‐14
Mar-‐14
May-‐14
Jul-‐1
4
Sep-‐14
Nov-‐14
Jan-‐15
Mar-‐15
1 USD 1984.7₮ 1 EUR 2139.8₮ 1 CNY 320.1₮ 1 GBP 2932.9₮ 1 RUB 34.9₮ 1 CAD 1561.1₮*Mongol Bank
MONGOLIAN TUGRIK VS US DOLLAR
MONGOLIAN STOCK EXCHANGE CHART
CONSUMER PRICE INDICIES: 2015/Mar CPI March Month YTD YOY
Ulaanbaatar 0.8 1.5 8.8
Mongolia 0.8 1.9 9.3
MONETARY INDICATORS: 2015/Mar bln ₮ YOY %Reserve money 2468.5 (21.1%)M2 Money 9903.7 (0.5%)
mln USD Mar 2015 Mar 2014 Change %
Exports 324.5 392.3 (17.3%)
Imports 239.3 382.1 (37.4%)
Net exports 85.2 10.2 --Source: National Statistics Office
EXTERNAL SECTOR
Mar 31 Feb 28 MONTHLY CHANGE MSE TOP 20 INDEX 13,095.8 13,907.7 (5.8%)Market Cap (USD) 660,583,327 691,526,238 (4.5%)
MSE TOP 20 INDEX
OFFICIAL EXCHANGE RATES*: 3/31/2015
March 2015 - Economic Update
Jan
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May
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Sep
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May
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Sep-
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Mar
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1,600
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INTEREST RATES 2015/ MarPolicy rate 13.0%Overnight repo 15.0%Overnight deposit 11.0%Repo 13.5%
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09.09.02
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10.01.02
10.03.02
10.05.02
10.07.02
10.09.02
10.11.02
11.01.02
11.03.02
11.05.02
11.07.02
11.09.02
11.11.02
12.01.02
12.03.02
12.05.02
12.07.02
12.09.02
12.11.02
13.01.02
13.03.02
13.05.02
13.07.02
13.09.02
13.11.02
14.01.02
14.03.02
14.05.02
14.07.02
14.09.02
14.11.02
15.01.02
15.03.02
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May
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Jul-0
9
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Jul-1
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Jul-1
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Jul-1
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Mar
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May
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June
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Sep-
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Jan-
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